P18-3 Perform ratio analysis, and evaluate financial position and operating results. Consolidated balance sheet and income statement data for Landwehr Corporation appear below. Cash Accounts receivable (net) Other current assets Investments Plant and equipment (net) Current liabilities Long-term debt Common stock, $10 par Retained earnings Instructions (a) LANDWEHR CORPORATION Balance Sheets December 31 (b) Sales revenue Less: Sales returns and allowances Net sales Cost of goods sold Gross Profit Operating expenses (including income tax) Net income 2018 $25,000 50,000 90,000 75,000 400,000 $640,000 $75,000 80,000 340,000 145,000 $640,000 LANDWEHR CORPORATION Income Statement For the Years Ended December 31 2017 $20,000 45,000 95,000 70,000 370,000 $600,000 Additional information: 1. The market price of Landwehr's common stock was $4.00, $5.00, and $8,00 for 2016, 2017, and 2018, respectively. 2. All dividends were paid in cash. $80,000 85,000 310,000 125,000 $600,000 2018 $740,000 40,000 700,000 420,000 280,000 235,000 $45,000 2016 $18,000 48,000 64,000 45,000 358,000 $533,000 (4) Price-earnings ratio. (5) Payout ratio. (6) Debt to assets ratio. Based on the ratios calculated, discuss briefly the improvement or lack thereof in financial position and operating results from 2017 to 2018 of Landwehr Corporation. $70,000 50,000 300,000 113,000 $533,000 2017 $700,000 50,000 650,000 400,000 250,000 220,000 $30,000 Compute the following ratios for 2017 and 2018. (Round ratios to one decimal point; round earnings per share to two decimal points) (1) Profit margin. (2) Asset turnover. (3) Earnings per share. (Weighted-average common shares in 2018 were 32,000 and in 2017 were 31,000).